#CEXvsDEX101 Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) are two types of platforms where users can exchange cryptocurrencies, but with fundamental differences in their operation, control, and security.

A CEX, like Binance or Coinbase, is operated by a central entity that acts as an intermediary. It offers high liquidity, customer support, an intuitive interface, and faster transaction speeds. However, users must deposit their funds on the platform, which involves trusting a third party and accepting certain risks such as hacking, account freezing, or censorship.

On the other hand, a DEX, like Uniswap or PancakeSwap, allows users to trade directly from a personal wallet, without the need for intermediaries. This provides greater privacy, complete control of funds, and resistance to censorship. However, DEXs often have lower liquidity, less user-friendly interfaces for beginners, and higher fees on congested networks (like Ethereum).

In summary, CEXs are ideal for those seeking ease of use and support, while DEXs attract users who prioritize decentralization and absolute control over their assets. The choice depends on each user's needs, knowledge, and level of trust.